Looking for a New Water Heater? You Could Be Eligible for Tax Credits When Installing a Heat Pump Water Heater!
Making the switch to a heat pump water heater isn’t just beneficial for your home’s energy efficiency. Homeowners who choose to install a hybrid water heater may also be eligible to receive a special tax credit, allowing them to enjoy significant savings beyond their monthly utility bills.
In this blog, we’ll discuss the available heat pump water heater tax credit and how New Orleans homeowners can qualify to receive special savings on their hybrid water heater investments.
What Is a Hybrid Water Heater?
A hybrid water heater — also referred to as a heat pump water heater — is a type of water heater that combines two different technologies to efficiently heat water: electricity and heat pump technology. Here’s how it works:
- Heat pump technology: The primary mechanism in a hybrid water heater is a heat pump. The heat pump extracts heat from the air and transfers it to the water in the storage tank.
- Electric backup: Hybrid water heaters also have an electric heating element as a backup. When the ambient air temperature is too low for the heat pump to operate efficiently or when hot water demand is high, the electric element kicks in to provide additional heating power.
The key benefits of hybrid water heaters are their energy efficiency and cost savings. They can be significantly more energy-efficient than traditional electric water heaters, which can result in lower utility bills over time. Due to their exceptional energy efficiency, these systems also qualify for special tax credits thanks to the Inflation Reduction Act (IRA).
What Is the Heat Pump Water Heaters Tax Credit?
In August 2022, the Inflation Reduction Act (IRA) was officially signed into law. One of the primary focuses of the act was to combat climate change by incentivizing energy-efficient upgrades made between January 1, 2023, through December 31, 2032, for homeowners with available tax credits and rebates. One such energy-efficient upgrade that’s covered through the program is the installation of hybrid water heaters.
Under the program, homeowners who choose to install a heat pump water heater may claim up to 30% of the project cost on their tax return (up to a $2,000 maximum credit). This helps make affording the cost of energy-efficient upgrades more accessible to families throughout New Orleans.
Who Is Eligible for the Heat Pump Water Heaters Tax Credit?
In order to qualify for the tax credit, the heat pump water heater that is installed must have earned an ENERY STAR® rating that meets or exceeds current energy-efficiency guidelines set forth by the U.S. Department of Energy. Additionally, homeowners must meet the following requirements to be eligible for the tax credit:
- You must own the property in which the heat pump water heater is installed.
- The property must be an existing home and must be your primary residence (new construction and rentals do not apply).
- The property must be located in the United States and may be a house, houseboat, mobile home, cooperative apartment, condominium, or manufactured home.
You should always consult with a knowledgeable tax professional to ensure you satisfy the requirements before filing for your tax credit.
Heat Pump Water Heater Installation & Upgrades
Finding a system that meets the requirements can be a challenge without the right expertise. That’s why it’s helpful to consult with an experienced plumbing professional when selecting a system that not only meets your hot water demands but also allows you to reap the full benefits of IRA tax credits.
A plumber can properly assess your property and determine which system is best for your home, ensuring accurate installation to maximize efficiency and energy savings. They can also provide valuable insights and personalized guidance on how to take advantage of available tax incentives and rebates that help make your investment even more affordable.
Turn to Stuart Services for Hybrid Heat Pump Installation in New Orleans
At Stuart Services, our team is well-versed in the available IRA tax incentives for New Orleans homeowners. We offer a broad variety of qualifying heat pump water heaters that will improve energy efficiency in your home while allowing you to enjoy the benefits of this special tax credit.
Consult with our plumbing professionals about your water heater needs. Call 504-321-2079 now to schedule hybrid water heater installation in New Orleans!